Plans for a new 13,500-capacity arena for Leeds moved closer to fruition today.

On a glorious April morning, joint council leader Andrew Carter announced that BAM Construction UK, the company behind the new pavilion at Headingley and the City Varieties refurbishment, would be the preferred contractor for the new arena, which will be built off Claypit Lane.

Councillor Andrew Carter (left) with James Wimpenny, director of BAM Construction, at the site on Clay Pit Lane. Photograph: John Baron/guardian.co.uk

With building due to start later this year, James Wimpenny, director of BAM Construction in the North East, said: "It is going to be a challenging build. Something as big as this in a city-centre location will be a test for us. But at the same time I'm really excited. This is going to be a signature building for the city."

Wimpenny highlighted the company's role in the building of the Rose Bowl, the state-of the-art structure which houses Leeds Metroplitan University's business school, and its construction of the Berlin 02 Arena and several football stadiums in South Africa which will be used for this summer's World Cup.

The Leeds arena is expected to add £25.5m a year to the city's economy and protect around 100 construction jobs. It will create an additional 100 jobs for local residents, with potentially 90 new apprenticeships. The arena is due to open in 2012.

Meanwhile, at yesterday's council executive board meeting at Leeds Civic Hall, Andrew Carter said it was time to end the debate over the decision to choose a city-centre location for the new arena.

His statement came after a number of letters in the Yorkshire Evening Post and comments posted on this blog questioning the public transport network and the lack of dedicated car parking at the site.

"We really need to move on," Carter told the meeting. "Most of us are convinced that this is the right location, which will bring economic and social benefits throughout the city centre and beyond.

"To imply that we would undertake to do something of this size without looking at the traffic issues and how we can get people safely to and from the arena is wholly wrong and insulting.

"It is all systems go, as far as I'm concerned."What do you think? Have your say in the comments section below.